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Canada’s minimum wage landscape is undergoing significant changes in 2025, with provinces and territories implementing various increases to address the rising cost of living and support workers. Here’s a comprehensive guide to the updated rates, eligibility criteria, and payment schedules across the country.
Federal Minimum Wage Adjustments
As of April 1, 2025, the federal minimum wage has been set at $17.75 per hour. This rate applies to employees working in federally regulated sectors such as banking, telecommunications, and interprovincial transportation. It’s important to note that if a provincial or territorial minimum wage is higher, employers must adhere to the higher rate.
Provincial and Territorial Minimum Wage Rates
Alberta
Alberta maintains its minimum wage at $15.00 per hour, unchanged since 2018. This rate remains the lowest in Canada. No increases are planned for 2025.
British Columbia
Effective June 1, 2025, British Columbia’s minimum wage rises to $17.85 per hour. Additionally, online platform workers, such as delivery drivers and ride-hail drivers, are entitled to a minimum hourly wage of $21.43 during engaged time.
Manitoba
Manitoba’s minimum wage is set to increase to $16.00 per hour on October 1, 2025. This adjustment aligns with the province’s annual review process.
New Brunswick
As of April 1, 2025, New Brunswick’s minimum wage stands at $15.65 per hour. Overtime pay is calculated at 1.5 times the regular rate for hours worked beyond 44 in a week.
Newfoundland and Labrador
Newfoundland and Labrador’s minimum wage increases to $16.00 per hour on April 1, 2025. The province plans to adjust the minimum wage annually based on the Consumer Price Index.
Nova Scotia
Nova Scotia’s minimum wage is set to rise in two phases: from $15.70 to $16.50 per hour on October 1, 2025. This increase follows an earlier adjustment to $15.70 on April 1, 2025.
Nunavut
Nunavut continues to offer the highest minimum wage in Canada, increasing to $19.75 per hour on September 1, 2025. This rate reflects the high cost of living in the territory.
Ontario
Ontario’s general minimum wage rises to $17.60 per hour on October 1, 2025. For homeworkers, the rate increases to $19.35 per hour. Special rates apply for students under 18 and liquor servers.
Prince Edward Island
Prince Edward Island’s minimum wage increases to $16.50 per hour on October 1, 2025. An additional increase to $17.00 is scheduled for April 1, 2026.
Quebec
Effective May 1, 2025, Quebec’s general minimum wage rises to $16.10 per hour. Employees receiving tips have a minimum wage of $12.90 per hour.
Saskatchewan
Saskatchewan’s minimum wage increases to $15.35 per hour on October 1, 2025. This adjustment follows a previous increase to $15.00 on October 1, 2024.
Northwest Territories
The minimum wage in the Northwest Territories rises to $16.95 per hour on September 1, 2025. This rate is adjusted annually based on the Consumer Price Index for Yellowknife and the average hourly wage in the territory.
Yukon
Yukon’s minimum wage increases to $17.94 per hour on April 1, 2025. The rate is adjusted annually based on the Consumer Price Index for Whitehorse.
Eligibility for Minimum Wage Increases
The 2025 minimum wage increases apply to most employees, including full-time, part-time, and temporary workers aged 16 and older. Special rates may apply to certain groups, such as students under 18, liquor servers, and homeworkers, depending on provincial regulations. It’s essential for employees to verify their eligibility based on their specific employment circumstances and location.
Payment Schedule and Implementation
The new minimum wage rates will be reflected in employees’ paychecks starting from the effective dates specified for each province or territory. Employers are required to adjust their payroll systems accordingly to comply with the updated wage rates. Employees should review their pay stubs to ensure that the correct minimum wage is being applied. If discrepancies are found, workers are advised to contact their employer or the relevant provincial labor board.
Conclusion
The 2025 minimum wage increases across Canada represent a concerted effort to support workers amid rising living costs. While the adjustments vary by province and territory, they collectively aim to enhance the financial well-being of employees. It’s crucial for workers to stay informed about the specific rates and effective dates in their jurisdiction to ensure they receive the appropriate compensation. By understanding these changes, employees can better navigate their financial planning and employment rights.